A Resesrch Report

On

DISTRIBUTION CHANNEL RELATIONSHIP - A STUDY OF SALES PROMOTION TOOLS IN DABUR FOODS [CRM]

As the partial fulfillment of Post Graduate Diploma in Management

2011-2013

SUBMITTED TO
Dr. Naresh Sharma

SUBMITTED BY
Md Intezar Alam PGDM 4th SEM
Roll no-pgdm/11/16

IIMT COLLEGE OF MANAGEMENT ,GREATER NOIDA

Declaration

I hereby declare that this project report entitled Distribution Channel Relationship-A Study of Sales Promotion Tools in Dabur Foods (CRM) is written and submitted by me under the kind guidance of Faculty Guide Dr. Praveen Gupta . The findings and interpretations in the report are based on both primary and secondary data collection. This project is not copied from any source or other project submitted for similar purpose.

Md Intezar Alam

ACKNOWLEDGEMENT

This project is a team project, while my name is on the cover page of this project, literally many of the people have contributed to this research report. Every work requires commitment, but this commitment goes in vein when there is no guidance. Last but not the least I also acknowledge with thanks for his valuable suggestions and I am also indebted to the faculty of for making me worth this work.

PREFACE
This project had been undertaken for DISTRIBUTION CHANNEL RELATIONSHIP - A STUDY OF SALES PROMOTION TOOLS IN DABUR FOODS".

Dabur India Limited is the fourth largest FMCG Company in India with interests in Health care, Personal care and Food products. Building on a legacy of quality and experience for over 100 years, today Dabur has a turnover of Rs.2233.72 crore with powerful brands like Dabur Amla, DaburChyawanprash,Vatika, Hajmola & Real. In order to gather the most appropriate and accurate data survey was conducted in various location and markets in Delhi. The data was assimilated with the help of a questionnaire aimed and designed to extract the most correct and conclusive information. The consumers were requested to fill the questionnaire and were also asked various other relevant questions revealing detailed information apart from that in the questionnaire. The survey was conducted successfully and its findings have been studied, analyzed and have led to a conclusion, included in the report, which could prove to be fruitful for the project.

TABLE OF CONTENTS
1. Executive Summary 2. Introduction 2.1 Corporate Objectives 2.2 Corporate Philosophy 2.3 Over The Years 3. Social Issues 3.1 Joint Ventures 3.2 Subsidiaries 3.3 Towards Green Tomorrow 3.4 Protection For And From Nature 4. Board of Directors 5. Dabur Research Foundation 5.1 The People 5.2 Scientific Network and Affiliations 5.3 Milestones 5.4 Research Areas 5.4.1 Ayurvedic Research 5.4.2 Phytopharmaceuticals 5.4.3 Agronomy 5.4.4 Analytical Research 5.4.5 Food Research 6. Timeline 7. Products 7.1 Division and Products 7.2 Healthcare Products 7.2.1 Ayurvedic Healthcare Products 7.2.2 Digestives 7.3 Childcare Products 7.4 Familycare Products 7.5 Oralcare Products 7.6 Ayurvedic Specialities 7.7 Pharmaceuticals

7.8 Foods 8. Research Methodology 8.1 Sample Design 8.2 Research Approach 8.3 Research Instruments 8.4 Contact Method 8.5 Data Interpretation 8.6 Limitations 9. Schedule 10. Analysis and Interpretation 11. Conclusion. 12. Bibliography

EXECUTIVE SUMMARY
Dabur India Limited has marked its presence with some very significant achievements and today commands a market leadership status. Our story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our policies and initiatives speak for themselves.

1Leading consumer goods company in India with a turnover of Rs.2233.72 Crore (FY07) 2 major strategic business units (SBU) - Consumer Care Division (CCD) and Consumer Health Division (CHD) 3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and Dabur International and 3 step down subsidiaries of Dabur International - Asian Consumer Care in Bangladesh, African Consumer Care in Nigeria and Dabur Egypt. 13 ultra-modern manufacturing units spread around the globe Products marketed in over 50 countries Wide and deep market penetration with 47 C&F agents, more than 5000 distributors and over 1.5 million retail outlets all over India

CCD, dealing with FMCG Products relating to Personal Care and Health Care Leading brands Dabur - The Health Care Brand Vatika-Personal Care Brand Anmol- Value for Money Brand Hajmola- Tasty Digestive Brand and Dabur Amla, Chyawanprash and Lal Dant Manjan with Rs.100 crore turnover each Vatika Hair Oil & Shampoo the high growth brand Strategic positioning of Honey as food product, leading to market leadership (over 40%) in branded honey market Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share. Leader in herbal digestives with 90% market share Hajmola tablets in command with 75% market share of digestive tablets category Dabur Lal Tail tops baby massage oil market with 35% of total share CHD (Consumer Health Division), dealing with classical Ayurvedic medicines Has more than 250 products sold through prescriptions as well as over the counter Major categories in traditional formulations include: - Asav Arishtas - Ras Rasayanas - Churnas - Medicated Oils Proprietary Ayurvedic medicines developed by Dabur include: - Nature Care Isabgol - Madhuvaani - Trifgol

INTRODUCTION

Dabur India Limited is one of the leading consumer goods companies of India with interests in healthcare, personal care and foods. For more than a century Dabur has worked in active collaboration with nature to provide the best of herbal health and personal care products to its consumers. Today, Dabur is all set to take this abundant knowledge of Ayurveda to global frontiers. Dabur India Limited is the fourth largest FMCG Company in India with interests in Health care, Personal care and Food products. Building on a legacy of quality and experience for over 100 years, today Dabur has a turnover of Rs.2233.72 crore with powerful brands like Dabur Amla, Dabur ChyawanprashVatika, Hajmola & Real. CORPORATE PHILOSOPHY:

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Knowledge is the key to growth in today's world. Whatever the industry, it is the knowledge, which provides cutting edge to individual and organizations. For more than a century nature has been a rich source of knowledge for Dabur. Nature has not only given us the ingredients for all our products but has also taught us how to create a harmony within and without the organization. Nature has inspired us in all our acts. Ayurveda - the science of life is based on principles of nature. All Ayurvedic preparations have their ingredients derived from Nature. Dabur has converted the healing properties of natural ingredients and the age-old knowledge of Ayurveda into contemporary healthcare products to alleviate health problems of its consumers. Dabur is committed to expand the reach of this age-old knowledge of Ayurveda and Nature through web. Through web, they aim to overcome the physical boundaries to take Ayurvedic way of life to global frontiers.

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OBJECTIVE

Focus on growing our core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology

Be the preferred company to meet the health and personal grooming needs of our target consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge of ayurveda and herbs with modern science

Provide our consumers with innovative products within easy reach Build a platform to enable Dabur to become a global ayurvedic leader

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Be a professionally managed employer of choice, attracting, developing and retaining quality personnel

Be responsible citizens with a commitment to environmental protection Provide superior returns, relative to our peer group, to our shareholders

VISION
"Dedicated to the Health and Well Being of Every Household." Dabur is a company with a set of established business values, which direct its functioning as well as all its operations. In this, Dabur is guided by the words of its founder Dr. S K Burman "What is that life worth that cannot give comfort to others." The company offers its consumers, products to suit their needs and give them good value for money. The company is committed to follow the ethical practices in doing

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business. At Dabur, Nature acts as not only the source of raw material but also an inspiration and the company is committed to protect the ecological balance

MISSION

"To be the leader in the Natural Foods & Beverages Industry." Strive to deliver this by: Consistently delighting the consumer through quality products Being the company of choice for our business partners

Delivering higher returns to stakeholders.

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DABUR GROUPS
With a basket including personal care, health care and food products, Dabur India Limited has set up subsidiary Group Companies across the world that can manage its businesses more efficiently. Given the vast range of products, sourcing, production and marketing have been divested to five leading group companies that conduct their operations independently:

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AT A GLANCE
OVER THE YEARS: The story of Dabur goes back to 1884, to a young doctor armed with a degree in medicine and a burning desire to serve mankind. This young man, Dr. S. K. Burman, laid the foundations of what is today known as Dabur India Limited. From those humble beginnings, the company has grown into India's leading manufacturer of consumer healthcare, personal care and food products. This phenomenal progress has seen many milestones, some of which are mentioned below:

1884 Dr. S K Burman lays the foundation of what is today known as Dabur India Limited. Starting from a small shop in Calcutta, he began a direct mailing system to send his medicines to even the smallest of villages in Bengal. The brand name Dabur is derived from the words 'Da' for Daktar or doctor and 'bur' from Burman. 1896 -As the demand for Dabur products grows, Dr. Burman feels the need for mass production of some of his medicines. He sets up a small manufacturing plant at Garhia near Calcutta.

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1900s The next generation of Burmans take a conscious decision to enter the Ayurvedic medicines market, as they believe that it is only through Ayurveda that the healthcare needs of poor Indians can be met. 1919 The search for processes to suit mass production of Ayurvedic medicines without compromising on basic Ayurvedic principles leads to the setting up of the first Research & Development laboratory at Dabur. This initiates a painstaking study of Ayurvedic medicines as mentioned in age-old scriptures, their manufacturing processes and how to utilize modern equipment to manufacture these medicines without reducing the efficacy of these drugs.

1920s A manufacturing facility for Ayurvedic Medicines is set up at Narendrapur and Daburgram. Dabur expands its distribution network to Bihar and the north-east. 1936 Dabur India (Dr. S K Burman) Pvt. Ltd. is incorporated. 1940 Dabur diversifies into personal care products with the launch of its Dabur Amla Hair Oil. This perfumed heavy hair oil catches the imagination of the common man and film stars alike and becomes the largest hair oil brand in India.

1949 Dabur Chyawanprash is launched in a tin pack and becomes the first branded Chyawanprash of India.

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1956 Dabur buys its first computer. Accounts and stock keeping are one of first operations to be computerized.

1970 Dabur expands its personal care portfolio by adding oral care products. Dabur Lal Dant Manjan is launched and captures the Indian rural market. 1972 Dabur shifts base to Delhi from Calcutta. Starts production from a hired manufacturing facility at Faridabad. 1978 Dabur launches the Hajmola tablet. This is the first time that a classical Ayurvedic medicine is branded - from Shudhabardhak bati to Hajmola tablet. 1979 The Dabur Research Foundation (DRF), an independent company, is set up to spearhead Dabur's multi-faceted research. 1979Commercial production starts at Sahibabad. This is one of the largest and most modern production facilities for Ayurvedic medicines in India at this time.

1984 -

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The Dabur brand turns 100 but is young enough to experiment with new offerings in the market.

1986 Dabur becomes a public limited company through reverse merger with Vidogum Limited, and is re-christened Dabur India Limited. 1989 Hajmola Candy is launched and captures the imagination of children and establishes a large market share. 1992 Dabur enters into a joint venture with Agrolimen of Spain for manufacturing and marketing confectionery items such as bubble gums in India. 1993 Dabur sets up the oncology formulation plant at Baddi, Himachal Pradesh. 1994 Dabur India Limited comes out with its first public issue. The Rs.10 share is issued at a premium of Rs.85 per share. The issue is oversubscribed 21 times.

1994 Dabur reorganizes its business with sales and marketing operations being divided into 3 separate divisions.

1994 -

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Dabur enters the oncology (anti-cancer) market with the launch of Intaxel (Paclitaxel). Dabur becomes only the second company in the world to launch this product. The Dabur Research Foundation develops the unique eco-friendly process of extracting the drug from the leaves of the Asian Yew tree. 1995 Dabur enters into a joint venture with Osem of Israel for food and Bongrain of France for cheese and other dairy products. 1996 Dabur launches Real Fruit Juice which heralds the company's entry into the processed foods market. 1997 The Foods division is created, comprising of Real Fruit Juice and Hommade cooking pastes to form the core of this division's product portfolio. Project STARS (Strive To Achieve Record Successes) is initiated by the company to achieve accelerated growth in the coming years. The scope of this project is strategic, structural and operational changes to enable efficiencies and improve growth rates. 1998 The Burman family hands over the reins of the company to professionals. Mr. Ninu Khanna joins Dabur as the Chief Executive Officer. 1999-2000 - Dabur achieves the Rs.1000 crore turnover mark.

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MILESTONES TO SUCCESS
Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to learn and grow to a commanding status in the industry. The Company has gone a long way in popularising and making easily available a whole range of products based on the traditional science of Ayurveda. And it has set very high standards in developing products and processes that meet stringent quality norms. As it grows even further, Dabur will continue to mark up on major milestones along the way, setting the road for others to follow. 1884 - Established by Dr. S K Burman at Kolkata 1896 - First production unit established at Garhia 1919 - First R&D unit established Early 1900s - Production of Ayurvedic medicines Dabur identifies nature-based Ayurvedic medicines as its area of specialization. It is the first Company to provide health care through scientifically tested and automated production of formulations based on our traditional science. 1930 - Automation and upgradation of Ayurvedic products manufacturing initiated 1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated 1940 - Personal care through Ayurveda Dabur introduces Indian consumers to personal care through Ayurveda, with the launch of Dabur Amla Hair Oil. So popular is the product that it becomes the largest selling hair oil brand in India. 1949 - Launched Dabur Chyawanprash in tin pack Widening the popularity and usage of traditional Ayurvedic products continues. The ancient restorative Chyawanprash is launched in packaged form, and becomes the first branded Chyawanprash in India. 1957 - Computerization of operations initiated 1970 - Entered Oral Care & Digestives segment Addressing rural markets where homemade oral care is more popular than multinational brands, Dabur introduces Lal Dant Manjan. With this a conveniently packaged herbal toothpowder is made available at affordable costs to the masses.

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1972 - Shifts base to Delhi from Calcutta 1978 - Launches Hajmola tablet Dabur continues to make innovative products based on traditional formulations that can provide holistic care in our daily life. An Ayurvedic medicine used as a digestive aid is branded and launched as the popular Hajmola tablet. 1979 - Dabur Research Foundation set up 1979 - Commercial production starts at Sahibabad, the most modern herbal medicines plant at that time 1984 - Dabur completes 100 years 1988 - Launches pharmaceutical medicines 1989 - Care with fun The Ayurvedic digestive formulation is converted into a children's fun product with the launch of Hajmola Candy. In an innovative move, a curative product is converted to a confectionary item for wider usage. 1994 - Comes out with first public issue 1994 - Enters oncology segment 1994 - Leadership in health care Dabur establishes its leadership in health care as one of only two companies worldwide to launch the anti-cancer drug Intaxel (Paclitaxel). Dabur Research Foundation develops an ecofriendly process to extract the drug from its plant source 1996 - Enters foods business with the launch of Real Fruit Juice 1996 - Real blitzkrieg Dabur captures the imagination of young Indian consumers with the launch of Real Fruit Juices - a new concept in the Indian foods market. The first local brand of 100% pure natural fruit juices made to international standards, Real becomes the fastest growing and largest selling brand in the country. 1998 - Burman family hands over management of the company to professionals 2000 - The 1,000 crore mark Dabur establishes its market leadership status by staging a turnover of Rs.1,000 crores. Across a span of over a 100 years, Dabur has grown from a small beginning based on traditional

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health care. To a commanding position amongst an august league of large corporate businesses. 2001 - Super specialty drugs With the setting up of Dabur Oncology's sterile cytotoxic facility, the Company gains entry into the highly specialized area of cancer therapy. The state-of-the-art plant and laboratory in the UK have approval from the MCA of UK. They follow FDA guidelines for production of drugs specifically for European and American markets. 2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4 crore 2003 - Dabur demerges Pharmaceuticals business Dabur India approved the demerger of its pharmaceuticals business from the FMCG business into a separate company as part of plans to provider greater focus to both the businesses. With this, Dabur India now largely comprises of the FMCG business that include personal care products, healthcare products and Ayurvedic Specialities, while the Pharmaceuticals business would include Allopathic, Oncology formulations and Bulk Drugs. Dabur Oncology Plc, a subsidiary of Dabur India, would also be part of the Pharmaceutical business. Maintaining global standards As a reflection of its constant efforts at achieving superior quality standards, Dabur became the first Ayurvedic products company to get ISO 9002 certification. Science for nature Reinforcing its commitment to nature and its conservation, Dabur Nepal, a subsidiary of Dabur India, has set up fully automated greenhouses in Nepal. This scientific landmark helps to produce saplings of rare medicinal plants that are under threat of extinction due to ecological degradation. 2005 - Dabur aquires Balsara As part of its inorganic growth strategy, Dabur India acquires Balsara's Hygiene and Home products businesses, a leading provider of Oral Care and Household Care products in the Indian market, in a Rs 143-crore all-cash deal. 2005 - Dabur announces bonus after 12 years

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Dabur India announced issue of 1:1 Bonus share to the shareholders of the company, i.e. one share for every one share held. The Board also proposed an increase in the authorized share capital of the company from existing Rs 50 crore to Rs 125 crore. 2006 - Dabur crosses $2 bin market cap, adopts US GAAP. Dabur India crosses the $2-billion mark in market capitalisation. The company also adopted US GAAP in line with its commitment to follow global best practices and adopt highest standards of transparency and governance.

TECHNOLOGY USED IN DABUR

In Dabur India Limited knowledge and technology are key resources which have helped the Company achieve higher levels of excellence and efficiency. Towards this overall goal of technology-driven performance, Dabur is utilizing Information Technology in a big way. This will help in integrating a vast distribution system spread all over India and across the world. It will also cut down costs and increase profitability.

Our major IT Initiatives

Migration from Baan and Mfg ERP Systems to centralized SAP ERP system from 1st April 2006 for all business units. Implementation of a country wide new WAN Infrastructure for running centralized ERP system. Setting up of new Data Centre at KCO Head Office. Extension of Reach System to distributors for capturing Secondary Sales Data.

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Roll out of IT services to new plants and CFAs.

Future Challenges

Forward Integration of SAP with Distributors and Stockiest. Backward Integration of SAP with Suppliers. Implementation of new POS system at Stockiest point and integration with SAPERP. Implementation of SAP HR and payroll.

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ENVIRONMENTAL PROSPECTS
"What is that life worth which cannot bring comfort to others", these words of Dr. S K Burman have inspired generations of Dabur. Keeping these golden words in mind, Sundesh or the Sustainable Development Society was set up to carry out welfare activities aimed at improving the quality of life of the rural people in its area of operation. This society is given complete financial and managerial support by Dabur India Limited. Sundesh is engaged in providing health services, non-formal education and training in income generating activities. The society has a dedicated team consisting of a doctor, a community organiser, a lady social worker, instructors for income generating activities, traditional birth attendants and village level workers. Sundesh organises regular OPDs and health camps in the villages. In addition to the mobile OPDs, other health services rendered include training of traditional birth attendants, immunisation programmes for children, maintenance of family health records, ante-natal check ups, pulse polio programmes and health awareness meetings for women on topics such as family planning, ante-natal care, post-natal care, the importance of vaccinations, baby care and AIDS prevention.

Jvs & subsidiaries: Dabur India has entered into joint ventures with well established international firms as well as created subsidiary units that further highlight its business philosophy of providing the best products to its customers.

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JOINT VENTURES
Dabon International Limited - Dabur has also collaborated with Bongrain of France for the manufacture and marketing of specialty cheese and other dairy products. This joint venture company has already made its presence felt in the Indian cheese market through the launch of processed cheese under the brand name Lebon, and a specialty cheese under the brand name Delicieux.

SUBSIDIARIES
Dabur has six subsidiary units, which come under the umbrella of the Dabur India organization. These are: Dabur Foods Limited Dabur Foods Limited, a 100% subsidiary of Dabur India Limited, is spearheading Dabur's foray into food processing industry. The company, set up in April 1999, is marketing a range of fruit juices under the brand name Real, Homemade Cooking Paste and Sauces and Lemoneez lemon juice. Dabur was the first company in India to introduce fruit juices in packaged form without any artificial additive. Real is today the market leader in this category with more than 50% market share. Homemade cooking paste is the only national brand in this category. Lemoneez is the only product in its category available in unique drop and trickle pack and uniquely shaped tabletop pack.

Dabur Nepal Private Limited Dabur Nepal was the first manufacturing base overseas for Dabur group. The company is today the leading exporter of Nepal and the third largest and most modern manufacturing base for

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Dabur. Dabur Nepal is today involved in promoting cultivation of herbs and apiculture activities in Nepal. The company has set up state of the art greenhouse at Banepa for developing saplings for 20 medicinal plants. Dabur Nepal has also set up an Apiculture centre for promoting beekeeping activity in Nepal and developing queen bees and bee colonies for exports. Dabur Egypt Limited Dabur Egypt is groups gateway to Africa. This manufacturing base set up a couple of years back to cater to the demands of Middle East and African market is producing Hair Care, Skin Care Products and Foods.

Dabur Oncology Plc. Set up recently in UK, this subsidiary of Dabur India Limited will be manufacturing anti-cancer formulations for European market. The company is in the process of setting up manufacturing base near London and is expected to start operation from year 2001.

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DABUR OVERSEAS LIMITED TOWARDS GREEN TOMMOROW

One of the thrust areas of foundation is conservation and cultivations of medicinal plants. DRF has developed cultivation packages for a number of herbs especially of endangered ones. A 15,000 sq. ft. greenhouse built in Nepal is now functional and provides millions of saplings of various medicinal herbs.

Dabur Research Foundation has to its credit development of a unique technique of isolation of paclitaxel from leaves instead of bark of Himalayan Yew. This not only saved the tree but also improved the growth as pruning of leaves gave a positive impact on growth of the plant. DRF conducts training for harvesting and post harvesting processing of herbs to ensure the sustainable usage of this natural resource. The Foundation promotes cultivation and organizes planting materials for selected herbs to farmers. It imparts training to farmers for cultivation of these medicinal plants, their drying and proper packaging in roadworthy condition. The foundation also organizes complete buy back arrangement for these select herbs. This effort has not only ensured development of a sustainable source of rare herbs but also has provided an alternative source of income to the farmers. Dabur Research Foundation has improved the extraction procedures of herbs in a fashion so that to increase the productivity of extracts/isolates and hence reduce pressure on natural habitats. DRF has developed tissue culture protocols for a number of herbs specially those of alpine habitat and those diminishing in the nature.

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PROTECTION FOR NATURE AND PROTECTION FROM NATURE

For well over a century, Dabur has worked hand in hand with nature. Drawing its strength and inspiration from nature's vast resources, Dabur has used herbs and minerals found in natural form as the ingredient for its products. As a company, Dabur understands its responsibility to contribute towards maintaining the ecological balance, and realizes the need to replenish what it takes from nature. The direct result of this realization has been 'Project Plant for Life', under which the company has set up tissue culture laboratories, a state-of-the-art greenhouse and contract cultivation with complete buy back facilities. This project not only ensures sustainable source of medicinal plants, but also improves the standard of living of the participating villagers. Since time immemorial, Dabur has received lots from nature, and it takes pride in

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DABUR RESEARCH FOUNDATION

Dabur Research Foundation (DRF), incorporated in 1979, is a premier research organization recognized by Department of Scientific and Industrial Research, Government of India. Situated at Sahibabad, DRF is today a known name for its path breaking research in the field of healthcare and personal care.

The Foundation is at the forefront of oncology research, and is in the process of developing many new molecules to fight this dreaded disease. In fact, DRF was the first organization in the world to develop a process for extraction of paclitaxel, a drug for cancer, without harming the source tree. The process is now followed worldwide.

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THE PEOPLE: Herbal health care is an area where Dabur Research Foundation has made immense contribution by doing research and development work using modern pharmaceutical protocols. The foundation has been doing clinical trials on traditional herbal drugs to validate the claims made in. For a research organization like Dabur Research Foundation, people are its biggest asset. At DRF, more than 125 scientists are engaged full time in interdisciplinary R&D of health and personal care products. The foundation has on its board independent advisors and consultants for guiding the team in their specific areas. The team of scientists is culled from various disciplines and includes Ayurvedic doctors, Chemists and phytochemists, botanists, agronomists, clinical pharmacologists, microbiologists, food technologists, bio-technologists, oil technologists, oncologists etc.

Scientists at many research institutions, universities and hospitals supplement the effort of this team of scientists with whom Dabur has networked for research in the areas of new molecules and drug delivery system. Dabur Research Foundation is possibly the only of its kind in the country carrying out research in diverse fields. Today, the scientists at DRF are pursuing research in more than 10 disciplines.

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SCIENTIFIC NETWORK & AFFILIATIONS:

Dabur Research Foundation has over the years built associations with various agencies, organizations, Hospitals, Universities Colleges, Public Laboratories etc. engaged in the Research & Development activities. This network has helped the foundation in research in the areas of clinical research, reverse pharmacology of Ayurvedics/Herbals and novel molecules & new drugs delivery system.

DRF is also affiliated with various professional bodies, organizations, Institutions in the country and abroad. Some of the organizations with which DRF has affiliations are-

DSIR, Government of India Expert Committee on Herbal Medicines Bureau of Indian Standards Expert Committee of United States Pharmacopoeia DRF conducts training for harvesting and post harvesting processing of herbs to ensure the sustainable usage of this natural resource. The Foundation promotes cultivation and organizes planting materials for selected herbs to farmers. It imparts training to farmers for cultivation of these medicinal plants, their drying and proper packaging in roadworthy condition. The foundation also organizes complete buy back arrangement for these select herbs. This effort has not only ensured development of a sustainable source of rare herbs but also has provided an alternative source of income to the farmers.

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Dabur Research Foundation has improved the extraction procedures of herbs in a fashion so that to increase the productivity of extracts/isolates and hence reduce pressure on natural habitats.

DRF has developed tissue culture protocols for a number of herbs specially those of alpine habitat and those diminishing in the nature. Drug technical Advisory Board, MOH&FW, Government of India

DRF gave new dimension to Chyawanprash after investigating the goodness of Chyawanprash in building general immunity. The foundation conducted more than 12 clinical trials on Chyawanprash to validate its immunomodulation properties. This research helped Dabur Chyawanprash to reposition it as herbal immunomodulator that builds you up from deep within.

Dabur Research Foundation developed a value-added coconut based hair oil that experimentally proved to be better than coconut oil alone. Today, that product, christened Vatika Hair Oil, has created a niche for itself with others trying to emulate it. Vatika shampoo normal and antidandruff are well set to follow in the footsteps of Vatika Hair Oil. DRF is the first organization in the world to isolate the anticancer drug, Paclitaxel, from the leaves of Himalayan Yew Tree using a unique eco-friendly process without causing any harm to the tree. The Foundation is only the second organization in world to evolve the technology for isolation of Paclitaxel.

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The research done by DRF facilitated availability of far cheaper anticancer medicine for the patients in India and many other countries of the world. DRF has developed Standardization Protocols for number of Ayurvedic herbs in order to ensure the quality of raw herbs as well as finished products manufactured out of it. This facilitated testing of each lot of raw materials with sophisticated analytical tools before they are used for manufacturing. DRF has till date conducted more than 200 studies to validate the claims recommended by Ayurvedic Granthas. This includes 49 Pharmacological Studies, 135 Clinical Trials and 10 Toxicological Studies. At DRF, blending the modern findings with traditional concepts is a routine.

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FOOD RESEARCH

Fruit juices development Nutritional products development Consumer friendly ethnic foods and spices Clinical Research:

TOXICOLOGY STUDIES
Animal studies for new and existing products/molecules Clinical trials of pharmaceuticals, anticancer drugs, new molecules Reverse Pharmacology Clinical trials of Ayurvedics / Herbals Post Marketing Surveillance

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TIMELINE
1979 - Incorporated as independent research organization 1986 - Starts experimental and clinical studies on Ayurvedics/herbals 1988 - Develops Hajmola Candy - a candy variant of Hajmola tablets having the taste and digestive properties of tablets in sugar base 1990 - Modern analytical lab equipped with HPLC, HPTLC, GLC etc. set up 1991 - Sets up oncology screening lab 1993 - Re-launches Chyawanprash as an immunity builder after clinically proving it 1994 - Develops eco-friendly method for extraction of paclitaxel from the leaves of Asian Yew Tree 1995 - Develops Vatika Hair Oil that creates a new product category

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PRODUCTS
A vast array of products touching the lives of almost every individual, from an infant to a grand old man, from poor to rich; that's how the Dabur's range of health personal care and food products could be best explained. Today Dabur trust has travelled beyond the boundaries of India and are available in more than 50 countries worldwide. These value for money products have made Dabur a household name.

DIVISIONS AND PRODUCTS

A vast array of products touching the lives of almost every individual, from an infant to a grand old man, from poor to rich; that's how the Dabur's range of health personal care and food products could be best explained. Today Dabur trust has travelled beyond the boundaries of India and are available in more than 50 countries worldwide. These values for money products have made Dabur a household name.

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HEALTHCARE PRODUCTS
Healthcare is one of the biggest and oldest divisions of Dabur with a wide range of OTC healthcare products. It comprises of:

Dabur Health Care Product Range

Dabur ChyawanprashDabur ChyawanshaktiGlucose D-

Hajmola Hajmola Candy Pudin Hara (Liquid and Pearls) Pudin Hara G Dabur Hingoli -

Dabur Lal tailDabur Janma Ghunti-

Shilajit Gold Nature Care Sat Isabgol -

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Dabur's Health Care range brings for you a wide selection of herbal products, to provide complete care for varying individual needs. We derive our products from the time-tested heritage of Ayurveda, backed by the most modern scientific test and trials. That ensure unfailing quality and safety in anything.

DABUR INTERNATIONAL PRODUCT RANGE

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CHARACTERIZATION

Dabur Ranked Among Dabur Moves Up 20 Places In Dabur India Chief Indias Most Trusted Indias 100 Most Valuable Executive Officer Mr Sunil Brands Of 2007 By Brands List Prepared By 4Ps. Duggal Ranked Amongst Economic Times-Brand Dabur Listed As 45th Most The 50 Best Non-Owner Equity Valuable Brand, Ahead Of Global Corporate Leaders In India & Domestic Biggies Like Sony, Inc, by 4Ps Ford, Yahoo!, TCS, Sunsilk, Lakme & Ponds

Dabur Amongst Top Three Most Respected FMCG Companies

Dabur Real Bags Gold In Reader's Digest Trusted Brand Awards

Dabur Figures In Top Great Place To Work 2006 List

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Dabur Amongst India's Dabur India CEO Dabur Placed Fourth In FMCG Category Most Valuable Amongst 100 Most In Annual ET - 500 Listing Companies Influential People Of 2007

Annual Listing Of India Inc's Most Powerful CEOs

Dabur Figures Amongst Top 3 Newsmakers In FMCG Sector

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BRAND MANAGEMENT STRATEGIES

The case let provides an overview of brand management strategy adopted by Dabur for its personal care brand Dabur Vatika. The case let follows the meticulous brand building initiatives taken by the company, from the launch of Dabur Vatika in 1995 to it becoming a Rs 1 bn brand by 2003. The case let also examines the objectives and elements that were involved in Vatikas brand building exercise. Marketing strategies Brand management strategies Product differentiation Packaging as a marketing communication tool Importance of choosing the right celebrity and its influence on the brand equity Brand extensions and communication strategy Until the early 1990s, Dabur, the 100-year old ayurvedic products manufacturer, was looked upon as a rather staid company that marketed herbal and ayurvedic products. Dabur Vatika in 1995 brought about a sea change in that perception. Within six years of its launch, Vatika had become the market leader in the value-added hair oils segment. Its success pushed Dabur into the league of top FMCG product companies in India. Dabur Vatikas success can be attributed to the companys differentiated product offering and meticulous brand building initiatives. The company concentrated on differentiating the brand in all aspects, right from positioning to packaging. At the time of its launch, Dabur positioned Vatika as value-added hair oil that contained pure coconut oil enriched with natural ingredients such as henna, amla (gooseberry), and lemon. Till then, the hair oil market had been dominated by plain coconut oil brands with Maricos flagship brand, Parachute, being the market leader.

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1.

Dabur Vatika, one of the youngest brands in the country (launched in 1995), has become a leading brand in the natural personal care product segment. What were the factors that enabled Vatika to become a flagship brand of Dabur in such a short span of time?

2.

Marketing communications play an important role in building brands. Discuss the role played by marketing communications in making Dabur Vatika a successful brand.

Chyawanprash
The leader in the chyawanprash market in India, Dabur Chyawanprash is one of the most well known Ayurvedic product in India and abroad. An effective herbal immunomodulator, Dabur Chyawanprash has the essential goodness of amla and over 50 other herbs. Dabur has conducted several clinical trials on this product which confirm its efficacy as a unique product that strengthens the body from within.

Digestives Hajmola Tablets

Hajmola Tablets are the first classical Ayurvedic product to be branded and positioned as fun-filled product with medicinal properties. It finds mention in Ayurvedic scriptures as Kshudhavardhak Bati, and was branded as Hajmola, a name derived from Hajma which means digestion in Urdu. It is available in regular and tamarind flavour.

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HajmolaCandy

To cash in on the brand equity enjoyed by Hajmola, Dabur launched Hajmola Candy in 1989. Since then, the company has added Mango and tamarind flavors besides the regular one.

PudinHara

One of the oldest products in Dabur portfolio, Pudin Hara is available in liquid as well as capsule form. It has a special combination of mint oils and cures gastric problems without any side effects.

Hingoli

Asafetida or Hing is mentioned in Ayurveda as an effective aid in digestion, and is used a lot in Indian cooking. Dabur's Hingoli has all the goodness of asafetida and other herbs.

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Childcare Products

DaburLalTail

The largest baby massage oil in India, it has the goodness of herbs which helps in strengthening the bones of infants.

DaburJanmaGhutti This Ayurvedic preparation helps in strengthening the digestive system of new born.

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FAMILYCARE PRODUCTS
The largest division in terms of sales, the Family Products Division of Dabur has in its portfolio hair care and skin care products, oral care and select foods like honey. Hair & Skin Care Dabur is the leader in hair care products in India, and has covered almost all the categories of hair oils.

Dabur Amla Hair Oil -

As a brand has made its mark beyond India and is a leading hair oil brand in middle East and Africa. A perfumed heavy hair oil, it is Dabur's largest brand.

Dabur Special Hair Oil It is a light hair oil that combines the natural hair care properties of lemon and hibiscus.

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Dabur Vatika -

The fastest growing hair oil brand of India, Vatika has single handedly created an altogether new category of herbal enriched natural oils. The Vatika range also includes a herbal shampoo which has made its mark in the very first year of its launch in the competitive shampoo market of India.

Gulabari

Rose water derived from best of Indian roses makes the skin supple and glowing.

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ORAL CARE

Dabur Lal Dant Manjan

It is the second largest tooth powder brand of India and the largest in coloured tooth power category. This herbal tooth powder is very popular in rural parts of India.

Binaca Toothbrushes

After having acquired this dormant brand a few years back, Dabur launched toothbrushes under this umbrella. There are plans to launch other oral care products under the Binaca brand.

AYURVEDIC SPECIALITIES

Ayurvedic Specialities is a range of over 350 Ayurvedic Medicines Both classical Ayurvedic drugs and proprietary Ayurvedic medicines - developed by Dabur's own research and development. Dabur has products for all the 16 categories as defined in the Ayurveda. Some of the leading products in this category are:

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Asav Arishtas These are medicated decoctions with a self generated alcohol content. Dabur has a range of over 30 Asav Arishtas. Some of the well known ones include Dashmularishta, Drakshasava, Lohasava, Parthadyarishta and Ashokarishta.

Chumash These are finely ground medicinal powders used to treat a variety of ailments ranging from digestive problems to cough and fever.

Ras Rasayanas Preparations containing mineral drugs as main ingredients are called Ras Rasayanas. Dabur has a range of more than 50 Ras Rasayans which are used by Ayurvedic practitioners in the cure of host of ailments.

Medicated Oils The oils boiled along with certain prescribed drugs are known as medicated oils. These oils retain the curative properties of herbs and is used for inunction and massage.

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PHARMACEUTICALS

Branded Pharmaceuticals It includes a range of natural ethical products like New Livfit, Honitus, Ulgel etc. and a range of contrast media and gynecological.

Oncology This wide and formidable range includes brands such as Intaxel, Docetaxel and Topotecan, all of which were manufactured for the first time in India by Dabur. Little wonder then, that Dabur is the undisputed market leader in this category in India and has plans to establish itself as a generic oncology player in select global markets.

Bulk Drugs and Chemicals This range consists primarily of bulks in the oncology category.

FOODS Launched over two years back, the Dabur Foods range include juices under the brand name Real and cooking pastes under the brand name Hommade. To give a better focus to this division. This division has been carved out as a subsidiary company of Dabur India Limited.

SUBSIDIARIES

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Dabur Foods Limited - Dabur Foods Limited, a 100% subsidiary of Dabur India Limited, is spearheading Dabur's foray into food processing industry. The company, set up in April 1999, is marketing a range of fruit juices under the brand name Real, Hommade Cooking Paste and Sauces and Lemoneez lemon juice.

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RESEARCH METHODOLOGY

RESEARCH DESIGN Ownership: This is our company. We accept personal responsibility, and accountability to meet business needs Passion for Winning: We all are leaders in our area of responsibility, with a deep commitment to deliver results. We are determined to be the best at doing what matters most People Development: People are our most important asset. We add value through result driven training, and we encourage & reward excellence Consumer Focus: We have superior understanding of consumer needs and develop products to fulfill them better Team Work: We work together on the principle of mutual trust & transparency in a boundaryless organisation. We are intellectually honest in advocating proposals, including recognizing risks Innovation: Continuous innovation in products & processes is the basis of our success Integrity: We are committed to the achievement of business success with integrity. We are honest with consumers, with business partners and with each other It has surveyed 100 outlets covering NCR (Gr. Noida / NOIDA). Ayurvedic Research: Standardization of herbs and finished products Validation of the processes

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Formulation development taking lead from Ayurveda Pharmaceutical Research: Development of new formulations of existing and new molecules Parenteral Formulations development Compatibility and shelf life studies Validation of processes

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PHYTOPHARMACEUTICALS: Isolation of existing and new therapeutic ingredients from natural sources Extraction technologies Processes development and transfer of technology Biotechnology: Tissue culture of medicinal plants especially endangered ones Cell and callus culture

AGRONOMY: Agro-technology development for medicinal plants Micro-propagation of medicinal plants Cultivation of medicinal and fruit plants Generation of quality planting material through greenhouse technology Personal Care Products: Development of skin and hair care products Oral care product development Ayurvedic medicated oil development Herbal extracts in cosmetics

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ANALYTICAL: Protocols and methods development for natural and synthetic products Bio-equivalence studies of Pharmaceutical Dosage forms Reaction monitoring of synthetic chemistry processes Marker compound testing as a tool for standardisation of Botanicals Synthetic Chemistry: Synthesis of known and new molecules and intermediates (APIs) Process development Lab scale synthesis of new molecules Scale up and purification methods Formulation and stability studies Novel drugs delivery systems

RESEARCH APPROACH Survey approach was chosen for this research work. Survey research is the best suited for gathering descriptive information company that wants to know about individuals knowledge, attitudes, prefrences or buying behavior can often find out by asking individuals directly. The major advantage of survey research is its flexibility. It can be used to obtain many different kinds of information in many different situations

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RESEARCH INSTRUMENTS Schedules which is the most commonly used instrument, was opted for this research. One copy of schedule framed is enclosed after this.

CONTACT METHOD Personal individual interview method was opted for this research work, as it is the most flexible method of all. DATA ANALYSIS AND INTERPRETATION The data thus collected was tabulated, analyzed and interpreted with view to make the study more meaningful. They were tabulated in manner so that results could be viewed easily. Some statistical techniques were used to examine the views of respondents. The use of tables, charts and diagrams had been made to present the data in the analysis form.

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ANALYSIS

The ANALYSIS faced during the research were: The sample size taken is 100, which is not sufficient to represent the entire universe. The size could not be increased due to time constrained. The areas covered were restricted to East and South Delhi only and as such the results of the surrey are valid for the above said areas. All information, which has been collected form, the respondents have been considered authentic and final. Besides all this the report has been on individual attempt and also involves the human process of interpretation and analysis, so there are chances of human error. Despite repeated proof reading there is a possibility of spelling error of otherwise which may have been overlooked

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ANALYSIS & INTERPRETATION

Most of the retailers stock 4 to 6 pieces of each brand of shampoos. SHAMPOOS AVAILABILITY (piece/retailer) NAME CATEGORY 1 TO 3 VATIKA HEAD & SHOULDERS PANTENE SUNSILK
160 140 120 100 1 TO 3 80 60 40 20 0 VATIKA H&S PANTENE SUNSILK 4 TO 6 MORE THAN 6 3-D Column 5

4 TO 6 130 130 145 140

MORE THAN 6 70 100 90 90

100 70 65 70

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SHAMPOOS VISIBILITY(piece/retailer) NAME CATEGORY 1 TO 3 VATIKA HEAD & SHOULDERS PANTENE SUNSILK 100 70 65 70 4 TO 6 130 130 145 140 MORE THAN 6 70 100 90 90

160 140 120 100 1 TO 3 80 60 40 20 0 VATIKA H&S PANTENE SUNSILK 4 TO 6 MORE THAN 6 3-D Column 4

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TOOTH BRUSHES AVAILIBILITY (piece/retailer) NAME 1 TO 12 BINACA COLGATE PEPSODENT ORAL B AQUAFRESH 50 30 30 CATEGORY 20 15 50 180 120 120 30 NILL 180 70 50 50 MORE THAN 30 NILL 100 NILL 100 100 NILL NILL

Mostly retailers prefer to stock 20 to 30 pieces of each of the brands. Very few retailers are there who stock the Bianca toothbrushes as compared to the other toothbrushes.

180 160 140 120 100 80 60 40 20 0

BINACA COLGATE PEPSODENT ORAL B AQUAFRESH 1 TO 12

20 30 M. T.30

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TOOTH BRUSHES VISIBILITY NAME BINACA COLGATE PEPSODENT ORAL B AQUAFRESH 50 30 30 CATEGORY

(piece/retailer)

1 TO 12 15 50 180

20 NILL 180 70 120 120

30 NILL 100

MORE THAN 30 NILL NILL NILL 100 100

50 50

100

180 160
0 50

Ea s t We s t North

1 TO 12

140
Qtr

1st

4 th Qtr

20 30 M. T.30

120 100 80 60 40 20 0
BINACA COLGATE PEPSODENT ORAL B AQUAFRESH

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COCONUT OILS AVAILIBILITY (piece/retailer) NAME CATEGORY 1 TO 3 VATIKA PARACHUTE 90 60 4 TO 6 140 80 MORE THAN 6 60 160

Most of the retailers prefer to stock less pieces of Vatika hair oil in comparison to the Parachute hair oil.

160

140

120

100 1 TO 3 4 TO 6 MORE- 6

80

60

40

20

0 VATIKA PARACHUTE

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COCONUT OILS VISIBILITY (piece/retailer) NAME CATEGORY 1 TO 3 VATIKA PARACHUTE 90 60 4 TO 6 140 80 MORE THAN 6 60 160

160

140

120

100 1 TO 3 4 TO 6 MORE- 6

80

60

40

20

0 VATIKA PARACHUTE

Although there are very less number of retailers stocking the tooth powders but in those who do they prefer to stock the Colgate tooth powder in comparison to Binaca tooth powder.

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TOOTH POWDER AVAILBILITY (piece/retailer) NAME BINACA COLGATE CATEGORY 1 TO 3 4 10 4 TO 6 NILL NILL

10 9 8 7 6 1 TO 3 5 4 3 2 1 0 BINAKA COLGATE 4 TO6

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RECOMMENDATIONS

Dabur should adopt an extensive push marketing strategy for all it's products and extensive advertising for products namely Vatika Hair oil, Amla Light and Binaca toothpowder and Binaca Toothbrush.

Dabur should ask their distributors for providing higher margins to the Retailers so they can be asked to push Dabur products.

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CONCLUSION

We surveyed around 100 retailers covering the east and the NCR (Gr.Noida & Noida). Among the 100 retail stores we covered we found that around 97% of the retail stores stock Dabur products, which means that Dabur has a good reputation in the eyes of the consumers. While noting the name of the stockiest we found that mostly there exists only one stockiest for a particular area. In case of Availability and Visibility of Vatika shampoo as compared to Head & Shoulders, Pantene and Sunsilk Vatika have an average position in the market and same is with the Amla light hair oil in comparison to Keokarpin and Hair & Care. In the category of coconut oils we found that normally retailers stock Parachute in large quantities as compared to Vatika Hair Oil. In the case of tooth powders there were very less retailers stocking them as they are in very less demand amongst the people in the respective areas which we covered, In toothbrushes category, Binaca is not as commonly stocked as compared to Aquafresh, Oral B, Colgate and Pepsodent. In the food section Roohafza is in more demand amongst the consumers as compared to sharbate azam. Regarding the service provide by the Dabur to its retailers we found that the Dabur personnel mostly visits most of the retailer on weekly basis.

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QUESTIONNAIRE

This questionnaire is meant to collect information from the retailers about the quantity stored by the retailers of Dabur products as compared to other competitors (Tick the appropriate answer/answers): 1. Out of these how many brands of shampoos do you store? a) Vatika b) Head & Shoulders c) Pantene d) Sunsilk

2. How many pieces of each brand of shampoos do you store? a) 1 to 3 b) 4 to 6 c) more than 6

3. Out of these how many brands of toothbrushes do you store? a) Binaca b) Colgate c) Pepsodent d) OralB e) Aquafresh

4. How many pieces of each brand of toothbrushes do you store? a) 1 to 12 b) 12 to 20 c) 20 to 30 d) more than 30

5. Out of these how many brands of coconut oil do you store? a) Vatika b) Parachute

6. How many pieces of each brand of coconut oil do you store? a) 1 to 3 b) 4 to 6 c) more than 6

7. Out of these how many brands of toothpowder do you store? a) Binaca b) Colgate

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8. How many pieces of each brand of toothpowder do you store? a) 1 to 3 b) 4 to 6

9. Out of these how many brands of light hair oil do you store? a) Amla light b) Keo-karpin

10. How many pieces of each brand of light hair oil do you store? a) 1 to 3 b) 4 to 6 c) more than 6

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FAQ QUESTIONNAIRE Q. Who leads the company? Q. When did Dabur go for its first public issue? Q. What is the role of the Burman family in the Companys management and operations? Q. What is the mailing address and phone numbers of Daburs headquarters? Q. What are the main product categories of Dabur? Q. How many group companies does Dabur have? Q. How does Dabur position itself? Q. What is Daburs status in the consumer goods market? Q. In how many countries does Dabur have its distribution network and offices? Q. Where can I get a copy of the Company Annual Report? Q. What are Daburs environmental concerns? Q. How does Dabur implement its social commitments? Q. What are the major areas of research undertaken by Dabur? Q. Who do I contact at Dabur for a business proposal? Q. In what manner and which areas of operation does Dabur support non-profit organizations?

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BIBLIOGRAPHY

1. Books

: Kotler Philip, Marketing Management. C.B. Kothari, Research Methodology.

2. Internet

: www.dabur.com www.google.com www.hll.org. www.daburproducts.co.in

3. Newspapers

: The Times of India The Hindustan Times Business World Economics Times

4. Schedules

: Personal interaction with Individuals

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